Before you blow-up over a lowball offer, or maybe you have already blown-up about it and you need some advice, take a step back, breathe and read on. We are here to help with tips on how you might be able to salvage the deal and strike a balance that works for you and the buyer.
We are assuming that you have read the offer in its entirety and reviewed it with your REALTOR®, if not, go back, check out our last blog post, review the offer and come back to us, or, you can just read on…
Go ahead and get mad, frustrated or whatever you need to feel to get it out of your system, then buckle down and seriously look at the situation, a low offer is better than no offer at all. At least you have something to work with. It is not a personal attack on you or your home, it is all about the buyer, not you!
It is normal for homes to sell at about 95-98% of the list price (assuming it is priced right). If the offer is below that, work with your REALTOR® to determine the net value of the offer in its entirety, having regard to ALL costs associated with selling your home. Once you know your ACTUAL net proceeds based on the offer you have received, compare that to what you need or expected to get from the sale of your home, then work backwards from that number and factor in things like:
- Has the buyer agreed to take over certain closing costs that are ordinarily paid by the seller? If not, consider asking the buyer to be responsible for some of these costs.
- What about the close of escrow date? Can you and the buyer agree to move it forward to reduce the amount of time you are carrying your mortgage and thereby reduce your closing costs?
- Will keeping appliances or other items normally included in the sale help to ease your expenses at the other end and thereby make the deal more attractive? Does the buyer already have appliances or plan to buy new appliances? It may make little or no difference to the buyer whether you leave or take your appliances.
- Accepting an offer basically removes your home from the market until it closes, consider asking the buyer to increase the size of the earnest money deposit to encourage him or her to stick with the purchase through to completion. Also, with a higher earnest money deposit, it will mean more money in your jeans if the buyer does back out after the contingencies are removed.
These are a few things you can think about and work with your REALTOR® on to make a polite and professional counteroffer. Yes, we want you to take the high road here because it is entirely possible to turn a lowball offer into a home run if it is handled well.
You do not have to accept a ridiculously low price, but you might consider lowering your price to a level that is suitable to you and negotiating the other terms such as the ones mentioned above. You may also consider letting the buyer know that you are grateful for the offer and that you do want to work with him or her, you can even explain how the price was determined and take the opportunity to point out some of the greater features of your home.
If you decide to counter their offer, the buyer may submit a counteroffer to your counteroffer, be prepared for this then lather, rinse, and repeat any necessary steps.
Remember, a low or lowball offer is not about you or your home, do not take it personally and always respond with gratitude and grace. A sour seller is easier to walk away from than to negotiate with.
That’s it for today’s post, if you want more information on things to consider when you receive an lowball offer, or if you want to stay up to date on all things Anthem, make sure you like our Facebook Page at ‘Wise Move AZ’ or subscribe to our Wise Move AZ channel on YouTube.
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